Shares in Degussa sank as the company became the latest major chemicals group to issue a profits warning and announced that a further 1,000 jobs would be axed to counter the sharp deterioration in its markets. The shares tumbled as much as 8.2 per cent, even though the warning came as little surprise after the spate of similar statements throughout the industry. Later the shares picked up, but were still 7.3 per cent adrift at €25.96.

French group Rhodia, by contrast, jumped 2.6 per cent to €8.60 as takeover speculation drove the stock. The heavily indebted Rhodia said last week it was open to a strategic alliance if it made industrial sense.

The Zurich-listed Sulzer Medica plummeted 44.9 per cent to a low of SFr36.65 after a US court gave the go-ahead for hundreds of potentially costly product liability lawsuits against the company, Europe's largest maker of orthopaedic devices.

Swiss biotech group Serono fell 10.6 per cent to SFr1,210 as it unveiled third-quarter figures below expectations and cut its full-year growth forecast for reported income to between 6 per cent and 8 per cent from an earlier 20 per cent.

Danish pharmaceuticals group Lundbeck dropped 6.4 per cent to DKr205 as the company faced up to increased generic competition for its top-selling anti-depressant.

German dialysis equipment specialist Fresenius Medical Care lost 9.4 per cent to €74.29 as it cut its 2001 profit outlook after reporting a 3 per cent drop in third-quarter operating profit as legal expenses pushed the results below expectations.

Commerzbank Securities, which cut its recommendation, said the stock still looked relatively defensive with good top line growth and long-term prospects.

Nordea, the Nordic region's largest banking group, tumbled 9.5 per cent to €4.99 as the group posted weaker-than-expected third-quarter results and said it expected increased economic uncertainty to cut into its business growth.